Out of. Reach. The growing gap between. Minnesota 2017 WAGES AND RENT. An annual report from

Transcription

1 Out of Reach Minnesota 2017 The growing gap between WAGES AND RENT An annual report from

2 Executive Summary When families pay too much for rent, they re forced to sacrifice to make ends meet cutting back at the grocery store or delaying a trip to the doctor. Building on the annual report produced by the National Low Income Housing Coalition, Out of Reach Minnesota 2017 delves further into state, county and local trends to reveal that households in every corner of Minnesota are spending thousands of dollars more than they can afford each year just to pay the rent for a modest apartment. Key findings in MHP's 2017 report include: From 2016 to 2017, the amount a renter household needs to earn to afford a modest apartmeny (the state "housing wage") increased by 5 percent a higher rate of change compared to the 3 percent increase from 2015 to Minnesota has climbed to #21 on the list of most expensive states in the nation, up from #24 just five years ago, rising above states like Texas and Arizona. To afford a two-bedroom apartment, the median-income * renter in Minnesota would need a 13 percent raise. A full-time minimum wage earner can t afford even a one-bedroom apartment in any of Minnesota s 87 counties. KEY TERMS IN THIS REPORT Fair Market Rent: The federal government standard for a fairly priced apartment. It is calculated as the 40th percentile of gross rents for typical, non-substandard rental units in a local housing market. In this report, we use the term modest one- or two-bedroom apartments to denote fair market rent. Housing Wage: The hourly wage workers need to earn to afford rent without spending 30 percent or more of their income. Affordability: Any household that spends more than 30 percent of their income on housing will likely have to sacrifice on daily necessities, like food and medicine. The lowest income households those earning 30 percent or less of area median income can afford a modest one-bedroom apartment in only four of Minnesota s 87 counties. Even efficiencies are not affordable in 35 counties. When rent is out of reach for those who are fully employed, our communities pay the price. We cannot afford to let housing costs continue to climb, while wages remain stagnant. OVERALL WAGES Rent 30 * A note on average vs median income: Average income calculations reflect the entire range of incomes within a certain area, which can skew these calculations toward outliers. Median income calculations reflect the middle-point of a range of incomes for a certain area, and are less likely to be skewed by outliers. Because there is significant income variation in most communities, with clusters of extremely high- and low-income households at either end of the spectrum, median income calculations represent a more conservative estimate of a typical household's income. In this report, average renter wage comes average weekly wages from the 2015 quarterly census of employment and wages and is adjusted by the national ratio of renter household income to total household income. Median renter wages are derived from ACS data and adjusted to 2017 dollars. 2

3 11 percent increase in renters since 2000 $21.21 U.S. $18.60 MN $16.36 $16.11 $14.57 ND WI $14.12 IA SD 18 percent Rise in the housing wage since 2007 Nearly 30 percent of Minnesota residents more than 600,000 households live in a rental unit. From 2000 to 2015, the state gained nearly 120,000 renter households, and the percentage of Minnesotans that are renters rose by 11 percent so the high cost of rental housing affects a growing number of Minnesotans throughout the state. Minnesota ranks #21 in the nation for the highest wages required to afford a modest two-bedroom apartment. The wage required to afford a modest twobedroom apartment in Minnesota is more expensive than 29 other states including $2.50 higher than Wisconsin, and $4 higher than Iowa. Since 2012, MN has climbed from #24 to #21 on the list of most expensive states. While households earnings have remained stagnant or declined, the housing wage has risen sharply. Adjusting for inflation, Minnesota's housing wage the wage necessary to afford a twobedroom apartment has jumped by nearly 18 percent over the past decade alone. Meanwhile, as housing costs have climbed, median renter income declined 11 percent from 2000 to Minnesota renter households don t earn nearly enough to pay the rent and make ends meet. WAGES can t cover RENT The average wage ($14.28) for a renter in Minnesota isn t enough to afford a modest two-bedroom apartment in any Minnesota county, and enough to afford a one-bedroom apartment in only 26 Minnesota counties (less than one-third of all counties). On average, a Minnesota renter has to pay $2,700 more than they can afford each year for a modest two-bedroom apartment. For those earning minimum wage ($9.50), even a one-bedroom apartment is out of reach in all Minnesota counties. To be able to afford a one bedroom apartment, a minimum wage worker must work 62 hour per week; to afford a two-bedroom apartment he or she must work 78 hours per week. 3

4 THE COST OF RENT, WHAT RENTERS CAN AFFORD, AND HOW MUCH THEY SACRIFICE TO MAKE ENDS MEET 2-BR RENT: $967 $111 / mo $1,332 / yr $225 / mo $2,700 / yr $356 / mo $4,272 / yr $473 / mo $5,676 / yr $722 / mo $8,664/ yr 1-BR RENT: $763 $856 $21 / mo $252 / yr $152 / mo $1,824 / yr $269 / mo $3,288 / yr $518 / mo $6,216 / yr Cost beyond what household can afford for a 1 BEDROOM Cost beyond what household can afford for a 2 BEDROOM WHAT RENTERS CAN AFFORD Many renter households don't earn enough to afford the cost of rent Affordable to full-time RENTER MEDIAN INCOME $742 Affordable to RENTER AVERAGE INCOME $611 Affordable to 30 PERCENT of STATE MEDIAN $494 Affordable to full-time MINIMUM WAGE EARNER $245 WHAT RENTERS HAVE TO PAY Renters must pay hundreds of dollars more per month and thousands more per year than they can afford on rent. Affordable to SSI RECIPIENT 4

5 Minimum wage earners and most employees in Minnesota s most in-demand jobs don t earn enough to afford rent. 150 Hours of work per week required to afford rent at minimum wage Hours per week at minimum wage employee must work 62 HOURS for 1 bedroom 78 HOURS for 2 bedroom $9.50 / hour $15 / hour 125 $72,700 Annual income of MN top jobs 1 compared to income necessary to afford rent bedroom: $38,700 1 bedroom: $30,505 Studio 1 BR 2 BR 3 BR MINNEAPOLIS / ST. PAUL SPOTLIGHT Registered nurse $23,400 Personal care aid $21,400 Retail sales $19,600 $18,900 Cashier Food prep & serving Campaigns across the nation, including Minneapolis, are pushing for a raise in the minimum wage to $15 per hour. Here s how many fewer hours per week a minimum wage worker would need to labor to afford rent in the Minneapolis / St. Paul metro area if minimum wage were $15 per hour rather than the current $9.50 per hour. 1 jobs with the highest projected growth from 2014 to 2024 Source: MN Dept of Employment and Economic Development 5

6 MINNEAPOLIS / ST. PAUL SPOTLIGHT: WAGE NEEDED TO AFFORD A MODEST TWO-BEDROOM APARTMENT BY ZIP CODE Zip: $20.96 $ $20.58 $ $24.42 $ $30.19 Zip: $21.92 Zip: $23.08 Zip: $20.58 Zip: $21.54 Hourly Wage Needed $ $17.88 $ $20.58 $ $24.42 $ $30.19 The housing wage for zip codes within the municipal borders of Minneapolis and St. Paul are higher than the region's 1-bedroom housing wage of $ This is because many suburban areas across the region typically have lower housing costs than central city areas $ $18.85 Zip: $18.85 Zip: $ $30.19 Zip: $ $ $ $17.12 Zip: $17.31 Zip: $20.00 Zip: $ $21.35 Zip: $20.00 Zip: $22.50 Zip: $20.00 Zip: $18.46 Zip: $19.62 Zip: $18.85 Zip: Zip: $18.46 Zip: $22.88 Zip: $19.23 Zip: $18.65 Zip: $ $23.85 Zip: $22.31 Zip: $20.19 Zip: $

7 MINNEAPOLIS / ST. PAUL SPOTLIGHT: WAGE NEEDED TO AFFORD A MODEST ONE-BEDROOM APARTMENT BY ZIP CODE Zip: $16.73 Zip: $17.5 Zip: $18.27 Zip: $16.35 Zip: $17.12 Hourly Wage Needed $ $14.23 $ $16.35 $ $19.42 $ $24.04 The housing wage for zip codes within the municipal borders of Minneapolis and St. Paul are higher than the region's 1-bedroom housing wage of $ This is because many suburban areas across the region typically have lower housing costs than central city areas. Zip: $ $ $14.62 Zip: $15.00 Zip: $ $ $ $13.65 Zip: $15.96 Zip: $ $20.58 Zip: $15.96 $11.73 $16.92 Zip: $15.96 Zip: $17.88 Zip: $14.62 Zip: $15.58 Zip: $15.00 Zip: $ $13.65 Zip: $14.62 Zip: $18.27 Zip: $15.19 Zip: $14.81 Zip: $15.38 Zip: $19.04 Zip: $17.69 Zip: $15.96 Zip: $

8 MINNEAPOLIS / ST. PAUL SPOTLIGHT In every county of the seven-county metro area, median-income White households can easily afford the hourly wage needed to rent a two-bedroom apartment but that s not true for communities of color. For instance, in Hennepin County, a median-income White household earns $36 per hour, while a medianincome Black household earns only $14 per hour significantly below the wage necessary to afford even a one-bedroom apartment. In fact, median-income Black, Native American, and Hispanic households are all below the wages necessary to afford a modest twobedroom apartment in Hennepin or Ramsey counties. Hennepin County Ramsey County WHITE ASIAN HISPANIC NATIVE AMERICAN BLACK $13.57 $13.37 $18.05 $14.09 $ BR $16.58 $22.62 $ BR $20.88 $35.63 $30.77 $35.53 Communities of color are disproportionately impacted by wide gaps between wages and rent. The growing gap between wages and rent has a disproportionate impact on communities of color. Statewide, the median wages earned by Black and Native American workers is half that of white and Asian workers 2. In the Twin Cities, these disparities are particularly stark. For instance, in Hennepin and Ramsey counties, the median income for a household of color is, on average, 40 percent less than the median income for a white household. MINNESOTA: MEDIAN WAGES BY RACE 2 $30.74 $20.30 $16.08 $18.60 $14.57 $ Median wages are for all households; not disaggregated by renters and owner households BLACK NATIVE AMERICAN 2 BR HOUSING WAGE HISPANIC WHITE ASIAN 8

9 "HOUSING WAGE" WAGE NECESSARY TO AFFORD A TWO-BEDROOM APARTMENT Kittson Marshall Pennington Red Lake Roseau Lake of the Woods Beltrami Koochiching Cook The housing wage is what a Minnesota workers need to earn to afford rent without paying more than 30 percent of their income on housing. In 2017, the income needed to afford the a modest two-bedroom apartment in the state of Minnesota is $38,700 per year nearly $4,500 more than the median renter earns per year ($34,250). With housing wage at $18.60 per hour for a modest two-bedroom apartment and $14.67 for a modest one-bedroom apartment, rent is out of reach for workers in the vast majority of Minnesota counties. Polk Clearwater Saint Louis Lake Norman Mahnomen Itasca Hubbard Clay Wilkin Grant Traverse Stevens Big Stone Lac Qui Parle Becker Otter Tail Lyon Swift Yellow Medicine Lincoln Douglas Pope Redwood Wadena Todd Renville Stearns Kandiyohi Meeker Chippewa Cass Morrison McLeod Carver Sibley Crow Wing Benton Nicollet Le Sueur Brown Aitkin Mille Lacs Kanabec Scott Rice Dakota Carlton Pine Isanti Sherburne Chisago Anoka Wright Washington Hennepin Ramsey Goodhue Wabasha Housing Wage, Two Bedroom $ $13.58 $ $14.54 $ $15.65 $ $18.00 $ $20.88 From 2016 to 2017, the state housing wage increased by 5 percent a higher rate of change from the 3 percent increase from 2015 to Compared to the state average of $18.60, the housing wage in non-metro areas is nearly $5 less per hour at $13.86 for a two-bedroom apartment. The highest housing wage in the state is located in the counties within the Minneapolis / St. Paul metro area, at $20.88 per hour or $43,440 annually to afford a modest two-bedroom apartment. Pipestone Murray Blue Earth Waseca Cottonwood Dodge Steele Olmsted Watonwan Winona Rock Nobles Jackson Martin Faribault Freeborn Mower Fillmore Houston 9

10 INCREASE IN HOUSING WAGE FROM 2007 TO 2017 Kittson Marshall Pennington Red Lake Roseau Lake of the Woods Beltrami Koochiching Cook Across the state, the housing wage has increased significantly over the past decade. In 2007, the housing wage for a modest two-bedroom apartment in Minnesota was $ Ten years later, the wage has risen 27 percent to $ Even adjusted for inflation, that s an increase of nearly 18 percent. From 2016 to 2017, the state housing wage increased by 5 percent a higher rate of change than the 3 percent increase from 2015 to Polk Clearwater Saint Louis Lake Norman Mahnomen Itasca Hubbard Clay Wilkin Rock Grant Traverse Stevens Big Stone Lac Qui Parle Becker Otter Tail Lyon Swift Yellow Medicine Lincoln Nobles Douglas Pope Redwood Jackson Wadena Todd Renville Stearns Kandiyohi Meeker Chippewa Martin Cass Morrison McLeod Carver Sibley Pipestone Murray Cottonwood Watonwan Crow Wing Benton Nicollet Le Sueur Brown Blue Earth Faribault Mille Lacs Aitkin Scott Kanabec Rice Freeborn Dakota Carlton Pine Isanti Sherburne Chisago Anoka Wright Washington Hennepin Ramsey Goodhue Steele Waseca Dodge Olmsted Mower Wabasha Fillmore Winona Percentage Change Houston 5% - 15% 16% - 20% 21% - 25% 26% - 30% 31% - 45% not adjusted for inflation Within Minnesota's major metro areas that were included in the 2007 Out of Reach report Duluth; Fargo; Grand Forks; La Crosse; Minneapolis/St. Paul; Rochester; and St Cloud the increase in the housing wage for a two bedroom apartment has been as high as 45 percent in Grand Forks, 29 percent in Fargo and 28 percent in Minneapolis / St. Paul. Non-metro areas in Minnesota have experienced a more modest increase of 20 percent for housing wage over the past 10 years. At the county level, Polk County has experienced the steepest increase in two-bedroom housing wage, jumping 45 percent since In this county, the hourly wage needed has risen from $11.33 to $

11 GAP BETWEEN RENT FOR TWO-BEDROOM APARTMENT AND WHAT MEDIAN-INCOME RENTER CAN AFFORD Kittson Marshall Clay Polk Norman Wilkin Rock Pennington Red Lake Grant Traverse Stevens Big Stone Lac Qui Parle Roseau Becker Otter Tail Lyon Swift Yellow Medicine Lincoln Mahnomen Nobles Clearwater Douglas Pope Redwood Jackson Lake of the Woods Beltrami Hubbard Wadena Todd Renville Stearns Kandiyohi Meeker Chippewa Martin Cass Morrison Sibley Pipestone Murray Cottonwood Watonwan Koochiching Crow Wing Benton Wright Itasca Nicollet Le Sueur Brown Aitkin Rice Saint Louis Carlton Pine Isanti Sherburne Chisago McLeod Carver Blue Earth Faribault Mille Lacs Kanabec Scott Anoka Ramsey Hennepin Freeborn Washington Dakota Goodhue Steele Waseca Dodge Olmsted Mower Wabasha Fillmore Gap Winona Lake Houston Cook ($317) - ($207) ($206) - ($98) ($97) - $0 $1 - $121 $122 - $231 In 69 percent of Minnesota counties, the medianincome renter can t afford rent for a two-bedroom apartment. At the state level, there is a more than $100 monthly gap or $1,200 annual gap between median renter income and what s needed to afford a two-bedroom apartment. In non-metro areas the gap decreases, but only to $45 per month or $540 per year. Median renter income is enough to cover the cost of a modest one-bedroom apartment in the vast majority of counties across the state. But in nine counties a modest one-bedroom apartment is not affordable: St Louis (-$8 per month), Stevens (-$16), Blue Earth (-$30), Cook (-$38), Koochiching (-$42), Ramsey (-$45), Polk (-$46), Chisago (-$93), Big Stone (-$167). Grand Forks metro area has the highest gap of all the major metro areas in Minnesota, with a monthly difference of $246 between renter median income and what s needed to afford a two-bedroom apartment. That means those renter households must spend $9,850 more per year than they can afford the greatest disparity for major metropolitan areas in the state. In 29 counties, the gap between renter median income and rent for a two-bedroom apartment exceeds $100; the largest gap is in Chisago County (-$317 per month) followed closely by Ramsey County (-$269 per month). There are three counties where median income renters must spend from $10,000-$12,000 more per year than they can afford for a modest two-bedroom apartment: Big Stone, Chisago, and Ramsey counties. 11

12 RENT AFFORDABLE TO MEDIAN-INCOME RENTER Kittson Marshall Pennington Red Lake Roseau Lake of the Woods Beltrami Koochiching Cook Even for median-income renters, housing costs far exceed earnings. For the median-income renter household in Minnesota, an affordable rent one that does not exceed 30 percent of a household s monthly income is $856 per month. That s nearly $100 less per month than is required to afford a modest two-bedroom apartment ($967). At the state level, Minnesota median-income renter households would need a 13 percent raise to afford rent for a modest two-bedroom apartment. Polk Clearwater Saint Louis Lake Norman Mahnomen Itasca Clay Wilkin Grant Traverse Stevens Big Stone Lac Qui Parle Becker Otter Tail Lyon Swift Yellow Medicine Lincoln Douglas Pope Redwood Hubbard Wadena Todd Renville Stearns Kandiyohi Meeker Chippewa Cass Morrison Sibley Crow Wing Benton Wright Mille Lacs McLeod Carver Nicollet Le Sueur Brown Aitkin Kanabec Scott Anoka Hennepin Ramsey Rice Dakota Carlton Pine Isanti Sherburne Chisago Washington Goodhue Wabasha Affordable Rent $414 - $553 $554 - $652 $653 - $763 $764 - $912 $913 - $1,122 Median-income renters in Washington County can afford the highest rent in the state at $1,122 per month. Median-income renters in Big Stone County can only afford $414 per month, the lowest level in the state. In contrast to the $856 affordable to the median-income renter at the statewide level, the median-income renter household in non-metro Minnesota can afford far less just $675 per month. The highest median-renter incomes are isolated to four counties of the Twin Cities region, with the highest in Dakota, Carver, Scott and Washington counties. Pipestone Murray Cottonwood Blue Earth WasecaSteele Dodge Watonwan Olmsted Winona Rock Nobles Jackson Martin Faribault Freeborn Mower Fillmore Houston 12

13 GAP BETWEEN RENT FOR ONE-BEDROOM APARTMENT AND WHAT LOWEST INCOME MINNESOTANS CAN AFFORD Kittson Roseau Lake of the Woods The lowest income households in Minnesota can only afford $611 per month in rent. Statewide, there is a $152 monthly gap between what a household at 30 percent of area median income earns and what would be required to pay for a modest one-bedroom apartment. Even efficiencies are out of reach; a household would need to earn nearly $200 more per year to afford a modest zero-bedroom apartment. Marshall Koochiching Pennington Red Lake Beltrami Cook Polk Clearwater Norman Mahnomen Hubbard Clay Becker Cass Itasca Saint Louis Lake An individual earning 30 percent of area median income can afford a modest one-bedroom apartment in only four of Minnesota s 87 counties: Waseca, Sibley, Kittson, and Lyon. Wilkin Grant Traverse Stevens Big Stone Otter Tail Lyon Swift Douglas Pope Redwood Todd Renville Stearns Kandiyohi Meeker Lac Qui Parle Chippewa Yellow Medicine Lincoln Wadena Morrison Sibley Crow Wing Nicollet Brown Benton Aitkin Rice Carlton Pine Isanti Sherburne Chisago Anoka Wright Washington Hennepin Ramsey McLeod Carver Mille Lacs Le Sueur Kanabec Scott Dakota Goodhue Wabasha Dollar Gap ($219) - ($164) ($163) - ($111) ($110) - ($51) ($50) - $0 $1 - $36 In 29 counties, the monthly gap exceeds $100. Mille Lacs County has the largest gap, with the lowest income residents facing a $219 monthly deficit to pay rent on a one-bedroom apartment. In all of the major metro areas, rent for a one-bedroom apartment is too expensive for a household earning 30 percent of the area median income. In Minneapolis / St. Paul the gap is $184 per month, or 2,200 per year. Pipestone Murray Rock Nobles Cottonwood Blue Earth WasecaSteele Dodge Watonwan Olmsted Winona Jackson Martin Faribault Freeborn Mower Fillmore Houston HUD considers households earning less than 30 percent of area median income "extremely low income" 13

14 HOURS AT MINIMUM WAGE TO AFFORD 1 BEDROOM APARTMENT Kittson Marshall Norman Clay Pennington Red Lake Polk Roseau Mahnomen Becker Clearwater Lake of the Woods Beltrami Hubbard Cass Koochiching Itasca Saint Louis Lake Cook A minimum wage earner in Minnesota must work more than one full-time job in every county in the state to be able to afford rent for even a onebedroom apartment. A minimum wage earner would have to work more than 40 hours per week to afford even a onebedroom apartment in all Minnesota counties. Statewide, a one-bedroom apartment costs $269 more per month than a minimum wage earner can afford. Because Minnesota has increased its minimum wage above the federal minimum wage, there is some good news. In 2007, when the minimum wage in Minnesota was $6.15, it took 78 hours per week to afford a one-bedroom apartment. With minimum wage rising to $9.50, that has dropped to 62 hours per week a decrease of 21 percent. For a two-bedroom apartment the hours required at minimum wage to afford rent dropped 19 percent. Wilkin Otter Tail Wadena Crow Wing Aitkin Carlton Grant Traverse Stevens Big Stone Lyon Douglas Pope Redwood Todd Stearns Morrison Nicollet Brown Benton Blue Earth Rice Pine Swift Anoka Kandiyohi Wright Meeker Lac Qui Chippewa Washington Parle Hennepin Ramsey McLeod Carver Yellow Medicine Renville Scott Dakota Sibley Lincoln Pipestone Murray Cottonwood Watonwan Mille Lacs Kanabec Isanti Sherburne Chisago Le Sueur Goodhue Wabasha Waseca Steele Dodge Olmsted Winona Work Hours/ Week In non-metro areas, minimum wage workers must work 45 hours per week to afford a modest one-bedroom apartment, and 58 hours per week for a two-bedroom. Minimum wage workers in the Twin Cities metropolitan area must work 70 hours per week to afford a modest one-bedroom apartment and 88 hours per week for a two-bedroom the highest number of hours for major metropolitan areas in the state. Rock Nobles Jackson Martin Faribault Freeborn Mower Fillmore Houston 14

15 Minnesota FY17 HOUSING WAGE HOUSING COSTS AREA MEDIAN INCOME (AMI) Hourly wage Annual income Full-time jobs at necessary to needed minimum wage Monthly rent 1 afford 2 BR 2 BR to afford needed to afford Annual affordable FMR FMR 2 BR FMR 2 BR FMR AMI at AMI 30% of AMI Monthly rent affordable at 30% of AMI Renter households ( ) RENTER HOUSEHOLDS % of total households ( ) Estimated hourly mean renter wage (2017) Monthly rent affordable at mean renter wage Full-time jobs at mean renter wage needed to afford 2 BR FMR Minnesota $18.60 $967 $38, $81,450 $2,036 $24,435 $ ,127 28% $14.28 $ Combined Nonmetro Areas $13.86 $721 $28, $64,773 $1,619 $19,432 $ ,972 24% $9.60 $ Metropolitan Areas Duluth MSA $14.83 $771 $30, $67,200 $1,680 $20,160 $504 27,308 28% $9.90 $ Fargo MSA $14.75 $767 $30, $75,200 $1,880 $22,560 $564 6,758 30% $7.45 $ Fillmore County HMFA $13.10 $681 $27, $68,100 $1,703 $20,430 $511 1,849 22% $7.35 $ Grand Forks MSA $16.42 $854 $34, $66,500 $1,663 $19,950 $499 3,510 28% $7.80 $ La Crosse-Onalaska MSA $15.65 $814 $32, $72,000 $1,800 $21,600 $540 1,521 19% $6.82 $ Le Sueur County HMFA $14.33 $745 $29, $73,300 $1,833 $21,990 $550 2,006 19% $10.16 $ Mankato-North Mankato MSA $16.40 $853 $34, $78,000 $1,950 $23,400 $585 12,210 33% $10.00 $ Mille Lacs County HMFA $16.23 $844 $33, $60,800 $1,520 $18,240 $456 2,641 26% $8.85 $ Minneapolis-St. Paul-Bloomington HMFA $20.88 $1,086 $43, $90,400 $2,260 $27,120 $ ,053 30% $16.32 $ Rochester HMFA $18.00 $936 $37, $88,600 $2,215 $26,580 $665 16,498 25% $13.91 $ Sibley County HMFA $13.35 $694 $27, $69,800 $1,745 $20,940 $524 1,282 21% $11.08 $ St. Cloud MSA $14.23 $740 $29, $70,000 $1,750 $21,000 $525 21,851 30% $11.21 $ Wabasha County HMFA $14.83 $771 $30, $70,000 $1,750 $21,000 $525 1,668 19% $8.86 $ Counties Aitkin County $13.58 $706 $28, $54,200 $1,355 $16,260 $407 1,339 18% $8.85 $ Anoka County $20.88 $1,086 $43, $90,400 $2,260 $27,120 $678 24,955 20% $13.04 $ Becker County $13.12 $682 $27, $63,600 $1,590 $19,080 $477 2,829 21% $8.91 $ Beltrami County $14.04 $730 $29, $57,100 $1,428 $17,130 $428 5,178 31% $9.69 $ Benton County $14.23 $740 $29, $70,000 $1,750 $21,000 $525 4,649 30% $8.74 $ : BR = Bedroom 2: FMR = Fiscal Year 2017 Fair Market Rent. 3: This calculation uses the higher of the state or federal minimum wage. Local minimum wages are not used. See Appendix B. 4: AMI = Fiscal Year 2017 Area Median Income 5: "Affordable" rents represent the generally accepted standard of spending not more than 30% of gross income on gross housing costs. 15

16 Minnesota FY17 HOUSING WAGE HOUSING COSTS AREA MEDIAN INCOME (AMI) Hourly wage Annual income Full-time jobs at necessary to needed minimum wage Monthly rent 1 afford 2 BR 2 BR to afford needed to afford Annual affordable FMR FMR 2 BR FMR 2 BR FMR AMI at AMI 30% of AMI Monthly rent affordable at 30% of AMI Renter households ( ) RENTER HOUSEHOLDS % of total households ( ) Estimated hourly mean renter wage (2017) Monthly rent affordable at mean renter wage Full-time jobs at mean renter wage needed to afford 2 BR FMR Big Stone County $13.10 $681 $27, $62,400 $1,560 $18,720 $ % $6.16 $ Blue Earth County $16.40 $853 $34, $78,000 $1,950 $23,400 $585 8,795 35% $9.85 $ Brown County $13.10 $681 $27, $67,900 $1,698 $20,370 $509 2,377 22% $9.50 $ Carlton County $14.83 $771 $30, $67,200 $1,680 $20,160 $504 2,858 21% $9.49 $ Carver County $20.88 $1,086 $43, $90,400 $2,260 $27,120 $678 6,767 20% $12.65 $ Cass County $13.96 $726 $29, $55,500 $1,388 $16,650 $416 2,472 19% $6.99 $ Chippewa County $13.10 $681 $27, $67,500 $1,688 $20,250 $506 1,494 30% $11.07 $ Chisago County $20.88 $1,086 $43, $90,400 $2,260 $27,120 $678 2,980 15% $8.46 $ Clay County $14.75 $767 $30, $75,200 $1,880 $22,560 $564 6,758 30% $7.45 $ Clearwater County $13.10 $681 $27, $55,600 $1,390 $16,680 $ % $10.67 $ Cook County $14.77 $768 $30, $65,400 $1,635 $19,620 $ % $5.84 $ Cottonwood County $13.10 $681 $27, $57,100 $1,428 $17,130 $428 1,020 21% $8.04 $ Crow Wing County $15.15 $788 $31, $62,500 $1,563 $18,750 $469 6,518 25% $9.70 $ Dakota County $20.88 $1,086 $43, $90,400 $2,260 $27,120 $678 39,515 25% $13.85 $ Dodge County $18.00 $936 $37, $88,600 $2,215 $26,580 $665 1,295 17% $10.60 $ Douglas County $14.33 $745 $29, $68,800 $1,720 $20,640 $516 3,687 24% $10.09 $ Faribault County $13.10 $681 $27, $59,400 $1,485 $17,820 $446 1,477 23% $11.57 $ Fillmore County $13.10 $681 $27, $68,100 $1,703 $20,430 $511 1,849 22% $7.35 $ Freeborn County $13.10 $681 $27, $60,800 $1,520 $18,240 $456 3,068 24% $11.02 $ Goodhue County $15.23 $792 $31, $75,500 $1,888 $22,650 $566 4,547 24% $10.89 $ Grant County $13.10 $681 $27, $62,500 $1,563 $18,750 $ % $8.04 $ Hennepin County $20.88 $1,086 $43, $90,400 $2,260 $27,120 $ ,801 37% $18.57 $ Houston County $15.65 $814 $32, $72,000 $1,800 $21,600 $540 1,521 19% $6.82 $ Hubbard County $13.10 $681 $27, $58,900 $1,473 $17,670 $442 1,638 19% $9.34 $ Isanti County $20.88 $1,086 $43, $90,400 $2,260 $27,120 $678 2,691 19% $10.48 $ Itasca County $14.23 $740 $29, $58,500 $1,463 $17,550 $439 3,889 21% $10.15 $ : BR = Bedroom 2: FMR = Fiscal Year 2017 Fair Market Rent. 3: This calculation uses the higher of the state or federal minimum wage. Local minimum wages are not used. See Appendix B. 4: AMI = Fiscal Year 2017 Area Median Income 5: "Affordable" rents represent the generally accepted standard of spending not more than 30% of gross income on gross housing costs. 16

17 Minnesota FY17 HOUSING WAGE HOUSING COSTS AREA MEDIAN INCOME (AMI) Hourly wage Annual income Full-time jobs at necessary to needed minimum wage Monthly rent 1 afford 2 BR 2 BR to afford needed to afford Annual affordable FMR FMR 2 BR FMR 2 BR FMR AMI at AMI 30% of AMI Monthly rent affordable at 30% of AMI Renter households ( ) RENTER HOUSEHOLDS % of total households ( ) Estimated hourly mean renter wage (2017) Monthly rent affordable at mean renter wage Full-time jobs at mean renter wage needed to afford 2 BR FMR Jackson County $13.10 $681 $27, $66,200 $1,655 $19,860 $497 1,024 24% $10.67 $ Kanabec County $14.38 $748 $29, $56,500 $1,413 $16,950 $424 1,217 20% $9.50 $ Kandiyohi County $13.31 $692 $27, $66,600 $1,665 $19,980 $500 4,576 27% $8.26 $ Kittson County $13.10 $681 $27, $68,900 $1,723 $20,670 $ % $9.13 $ Koochiching County $13.10 $681 $27, $60,200 $1,505 $18,060 $452 1,272 22% $8.18 $ Lac qui Parle County $13.10 $681 $27, $63,400 $1,585 $19,020 $ % $9.69 $ Lake County $13.96 $726 $29, $64,900 $1,623 $19,470 $487 1,025 20% $11.36 $ Lake of the Woods County $13.10 $681 $27, $55,400 $1,385 $16,620 $ % $7.91 $ Le Sueur County $14.33 $745 $29, $73,300 $1,833 $21,990 $550 2,006 19% $10.16 $ Lincoln County $13.10 $681 $27, $65,700 $1,643 $19,710 $ % $8.88 $ Lyon County $13.10 $681 $27, $73,100 $1,828 $21,930 $548 3,212 32% $10.16 $ McLeod County $13.21 $687 $27, $70,600 $1,765 $21,180 $530 3,520 24% $10.64 $ Mahnomen County $13.10 $681 $27, $46,000 $1,150 $13,800 $ % $8.89 $ Marshall County $13.10 $681 $27, $68,300 $1,708 $20,490 $ % $11.05 $ Martin County $13.10 $681 $27, $64,400 $1,610 $19,320 $483 2,318 26% $9.75 $ Meeker County $14.27 $742 $29, $67,300 $1,683 $20,190 $505 1,824 20% $8.23 $ Mille Lacs County $16.23 $844 $33, $60,800 $1,520 $18,240 $456 2,641 26% $8.85 $ Morrison County $13.10 $681 $27, $62,900 $1,573 $18,870 $472 2,716 20% $7.89 $ Mower County $14.54 $756 $30, $65,400 $1,635 $19,620 $491 4,330 28% $11.54 $ Murray County $13.10 $681 $27, $69,600 $1,740 $20,880 $ % $10.96 $ Nicollet County $16.40 $853 $34, $78,000 $1,950 $23,400 $585 3,415 27% $10.42 $ Nobles County $13.10 $681 $27, $61,700 $1,543 $18,510 $463 2,186 28% $11.93 $ Norman County $13.10 $681 $27, $61,300 $1,533 $18,390 $ % $9.98 $ Olmsted County $18.00 $936 $37, $88,600 $2,215 $26,580 $665 15,203 26% $14.09 $ Otter Tail County $13.10 $681 $27, $65,000 $1,625 $19,500 $488 5,169 21% $7.95 $ Pennington County $13.48 $701 $28, $66,900 $1,673 $20,070 $502 1,542 26% $10.76 $ : BR = Bedroom 2: FMR = Fiscal Year 2017 Fair Market Rent. 3: This calculation uses the higher of the state or federal minimum wage. Local minimum wages are not used. See Appendix B. 4: AMI = Fiscal Year 2017 Area Median Income 5: "Affordable" rents represent the generally accepted standard of spending not more than 30% of gross income on gross housing costs. 17

18 Minnesota FY17 HOUSING WAGE HOUSING COSTS AREA MEDIAN INCOME (AMI) Hourly wage Annual income Full-time jobs at necessary to needed minimum wage Monthly rent 1 afford 2 BR 2 BR to afford needed to afford Annual affordable FMR FMR 2 BR FMR 2 BR FMR AMI at AMI 30% of AMI Monthly rent affordable at 30% of AMI Renter households ( ) RENTER HOUSEHOLDS % of total households ( ) Estimated hourly mean renter wage (2017) Monthly rent affordable at mean renter wage Full-time jobs at mean renter wage needed to afford 2 BR FMR Pine County $15.10 $785 $31, $56,500 $1,413 $16,950 $424 2,486 22% $6.96 $ Pipestone County $13.10 $681 $27, $59,400 $1,485 $17,820 $446 1,020 26% $8.12 $ Polk County $16.42 $854 $34, $66,500 $1,663 $19,950 $499 3,510 28% $7.80 $ Pope County $13.58 $706 $28, $67,800 $1,695 $20,340 $ % $11.55 $ Ramsey County $20.88 $1,086 $43, $90,400 $2,260 $27,120 $678 84,740 41% $16.71 $ Red Lake County $13.10 $681 $27, $65,100 $1,628 $19,530 $ % $7.45 $ Redwood County $13.10 $681 $27, $63,800 $1,595 $19,140 $479 1,355 21% $10.36 $ Renville County $13.10 $681 $27, $64,300 $1,608 $19,290 $482 1,297 20% $11.18 $ Rice County $16.94 $881 $35, $76,000 $1,900 $22,800 $570 5,877 26% $10.14 $ Rock County $13.10 $681 $27, $63,800 $1,595 $19,140 $ % $8.88 $ Roseau County $13.10 $681 $27, $63,600 $1,590 $19,080 $477 1,351 21% $10.03 $ St. Louis County $14.83 $771 $30, $67,200 $1,680 $20,160 $504 24,450 29% $9.95 $ Scott County $20.88 $1,086 $43, $90,400 $2,260 $27,120 $678 7,896 17% $11.45 $ Sherburne County $20.88 $1,086 $43, $90,400 $2,260 $27,120 $678 5,853 19% $10.00 $ Sibley County $13.35 $694 $27, $69,800 $1,745 $20,940 $524 1,282 21% $11.08 $ Stearns County $14.23 $740 $29, $70,000 $1,750 $21,000 $525 17,202 30% $11.72 $ Steele County $14.83 $771 $30, $74,700 $1,868 $22,410 $560 3,375 24% $8.80 $ Stevens County $13.10 $681 $27, $73,700 $1,843 $22,110 $553 1,203 33% $8.88 $ Swift County $13.10 $681 $27, $67,500 $1,688 $20,250 $506 1,126 27% $10.04 $ Todd County $13.10 $681 $27, $57,300 $1,433 $17,190 $430 1,807 18% $8.27 $ Traverse County $13.10 $681 $27, $66,500 $1,663 $19,950 $ % $8.53 $ Wabasha County $14.83 $771 $30, $70,000 $1,750 $21,000 $525 1,668 19% $8.86 $ Wadena County $13.10 $681 $27, $51,800 $1,295 $15,540 $389 1,311 23% $9.03 $ Waseca County $13.10 $681 $27, $69,100 $1,728 $20,730 $518 1,656 23% $10.88 $ Washington County $20.88 $1,086 $43, $90,400 $2,260 $27,120 $678 18,068 20% $11.18 $ Watonwan County $13.10 $681 $27, $63,800 $1,595 $19,140 $479 1,142 26% $8.60 $ : BR = Bedroom 2: FMR = Fiscal Year 2017 Fair Market Rent. 3: This calculation uses the higher of the state or federal minimum wage. Local minimum wages are not used. See Appendix B. 4: AMI = Fiscal Year 2017 Area Median Income 5: "Affordable" rents represent the generally accepted standard of spending not more than 30% of gross income on gross housing costs.

19 Minnesota FY17 HOUSING WAGE HOUSING COSTS AREA MEDIAN INCOME (AMI) Hourly wage Annual income Full-time jobs at necessary to needed minimum wage Monthly rent 1 afford 2 BR 2 BR to afford needed to afford Annual affordable FMR FMR 2 BR FMR 2 BR FMR AMI at AMI 30% of AMI Monthly rent affordable at 30% of AMI Renter households ( ) RENTER HOUSEHOLDS % of total households ( ) Estimated hourly mean renter wage (2017) Monthly rent affordable at mean renter wage Full-time jobs at mean renter wage needed to afford 2 BR FMR Wilkin County $13.10 $681 $27, $67,300 $1,683 $20,190 $ % $7.38 $ Winona County $13.73 $714 $28, $71,200 $1,780 $21,360 $534 5,743 30% $8.77 $ Wright County $20.88 $1,086 $43, $90,400 $2,260 $27,120 $678 7,787 17% $9.73 $ Yellow Medicine County $13.10 $681 $27, $63,200 $1,580 $18,960 $ % $9.53 $ : BR = Bedroom 2: FMR = Fiscal Year 2017 Fair Market Rent. 3: This calculation uses the higher of the state or federal minimum wage. Local minimum wages are not used. See Appendix B. 4: AMI = Fiscal Year 2017 Area Median Income 5: "Affordable" rents represent the generally accepted standard of spending not more than 30% of gross income on gross housing costs. 19

20 CREDITS AND ACKNOWLEDGMENTS Writing, data analysis and mapping by Gabriela Norton, MHP Research and Communications Associate Editing, design and layout by Carolyn Szczepanski, MHP Director of Research and Communications Data review by Atticus Jaramillo, PhD candidate, University of North Carolina-Chapel Hill Out of Reach Minnesota is released jointly by the Minnesota Housing Partnership and the National Low Income Housing Coalition (NLIHC), a Washington, D.C.-based organization dedicated solely to achieving socially just public policy that assures people with the lowest incomes in the United States have affordable and decent homes. Contact Carolyn Szczepanski at carolyn.szczepanski@mhponline.org or (651) for assistance in accessing or analyzing Out of Reach data for any county or metro area of Minnesota select metro zip codes.